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    Sensient Technologies Corporation Reports Results for the Quarter Ended March 31, 2025

    4/25/25 6:55:00 AM ET
    $SXT
    Major Chemicals
    Industrials
    Get the next $SXT alert in real time by email

    Sensient Technologies Corporation (NYSE:SXT), a leading provider of flavors and colors for the food, pharmaceutical, and personal care markets, today reported financial results for the first quarter ended March 31, 2025.

    First Quarter Consolidated Results

    • Reported revenue increased 2.0% to $392.3 million in the first quarter of 2025 versus last year's first quarter results of $384.7 million. On a local currency basis(1), revenue increased 4.1%.
    • Reported operating income increased 8.3% to $53.5 million compared to $49.4 million recorded in the first quarter of 2024. In the first quarter of 2025, the Company recorded $2.9 million of costs related to its Portfolio Optimization Plan versus last year's $2.8 million in the first quarter. Local currency adjusted operating income(1) and local currency adjusted EBITDA(1) increased 10.3% and 10.1%, respectively, in the first quarter.
    • Reported earnings per share increased 11.0% to 81 cents in the first quarter of 2025 compared to 73 cents in the first quarter of 2024. Local currency adjusted diluted EPS(1) increased 11.4% in the first quarter.

    "As expected, Sensient got off to a strong start in the first quarter of 2025, building on the momentum from the previous year. Our results are driven by solid volume growth and sales wins, particularly in natural colors. The quarter's achievements underscore our ability to adapt in dynamic market conditions, and I am pleased to reaffirm our 2025 guidance," said Paul Manning, Sensient's Chairman, President, and Chief Executive Officer.

     

    First Quarter Group Results

     

    Reported

     

    Local Currency(1)

    Revenue

    Quarter

     

    Quarter

    Flavors & Extracts

    0.3%

     

    1.7%

    Color

    4.8%

     

    8.2%

    Asia Pacific

    4.0%

     

    4.8%

    Total Revenue

    2.0%

     

    4.1%

     

     

     

    Reported

     

    Local Currency Adjusted(1)

    Operating Income

    Quarter

     

    Quarter

    Flavors & Extracts

    5.5%

     

    6.2%

    Color

    10.0%

     

    13.5%

    Asia Pacific

    7.6%

     

    7.0%

    Total Operating Income

    8.3%

     

    10.3%

     

    The Flavors & Extracts Group reported first quarter 2025 revenue of $193.7 million, an increase of $0.6 million versus the prior year's first quarter. The Group's revenue benefited from higher volumes in our flavors, extracts, and flavor ingredients product lines, offset by lower volumes in natural ingredients. Segment operating income was $25.0 million in the first quarter of 2025, an increase of $1.3 million compared to the prior year's first quarter.

    The Color Group reported revenue of $167.8 million in the first quarter of 2025, an increase of $7.7 million compared to the prior year's first quarter. The Group's revenue increase was broad-based across all product lines. Segment operating income was $34.9 million in the first quarter of 2025, an increase of $3.2 million compared to the prior year's first quarter results.

    The Asia Pacific Group reported revenue of $41.9 million in the first quarter of 2025, an increase of $1.6 million compared to the prior year's first quarter. The Group's revenue increased across nearly all geographies. Segment operating income was $9.4 million in the quarter, an increase of $0.7 million compared to the prior year's first quarter.

    Corporate & Other reported operating expenses of $15.8 million in the first quarter of 2025, compared to $14.7 million of operating expenses reported in the prior year's first quarter. Local currency adjusted operating expenses(1) for Corporate & Other increased $1.0 million compared to the prior year's first quarter, primarily due to higher performance-based compensation costs recorded in 2025.

     

    2025 OUTLOOK

     
     
    Metric Current Guidance
     
    Local Currency Revenue(1) Mid-Single-Digit Growth
     
    Local Currency Adjusted EBITDA(1) Mid-Single-Digit to High Single-Digit Growth
     
    Diluted EPS (GAAP) Between $3.13 and $3.23*
     
    Local Currency Adjusted Diluted EPS(1) High Single-Digit to Double-Digit Growth
     
    *Includes approximately 15 cents of Portfolio Optimization Plan costs. Based on current exchange rates, foreign currency impact is expected to be approximately a 2 cent headwind for the year. Previous range was between $3.05 and $3.15.

    The Company's guidance is based on current conditions and economic and market trends in the markets in which the Company operates and is subject to various risks and uncertainties as described below.

    (1)

    Please refer to "Reconciliation of Non-GAAP Amounts" at the end of this release for more information regarding our non-GAAP financial measures.

    USE OF NON-GAAP FINANCIAL MEASURES

    The Company's non-GAAP financial measures eliminate the impact of certain items, which, depending on the measure, include: currency movements, depreciation and amortization, Portfolio Optimization Plan costs, and non-cash share-based compensation. These measures are provided to enhance the overall understanding of the Company's performance when viewed together with the GAAP results. Refer to "Reconciliation of Non-GAAP Amounts" at the end of this release.

    CONFERENCE CALL

    The Company will host a conference call to discuss its 2025 first quarter financial results at 8:30 a.m. CDT on Friday, April 25, 2025. To participate in the conference call, contact Chorus Call Inc. at (844) 492-3726 or (412) 317-1078, and ask to join the Sensient Technologies Corporation conference call. Alternatively, the call can be accessed by using the webcast link that is available on the Investor Information section of the Company's web site at www.sensient.com.

    A replay of the call will be available one hour after the end of the conference call through May 2, 2025, by calling (877) 344-7529 and using access code 4206177. An audio replay and written transcript of the call will also be posted on the Investor Information section of the Company's web site at www.sensient.com on or after April 29, 2025.

    This release contains statements that may constitute "forward-looking statements" within the meaning of Federal securities laws including under "2025 Outlook" above. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors concerning the Company's operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company's future financial performance include the following: the Company's ability to manage general business, economic, and capital market conditions, including actions taken by customers in response to such market conditions, and the impact of recessions and economic downturns; the impact of macroeconomic and geopolitical volatility, including inflation and shortages impacting the availability and cost of raw materials, energy, and other supplies, disruptions and delays in the Company's supply chain, and the conflicts between Russia and Ukraine and in the Middle East; industry, regulatory, legal, and economic factors related to the Company's domestic and international business; the effects of tariffs, trade barriers, and disputes; the availability and cost of labor, logistics, and transportation; the pace and nature of new product introductions by the Company and the Company's customers; the Company's ability to anticipate and respond to changing consumer preferences, changing technologies, and changing regulations; the Company's ability to successfully implement its growth strategies; the outcome of the Company's various productivity-improvement and cost-reduction efforts, acquisition and divestiture activities, and Portfolio Optimization Plan; growth in markets for products in which the Company competes; industry and customer acceptance of price increases; actions by competitors; the Company's ability to enhance its innovation efforts and drive cost efficiencies; currency exchange rate fluctuations; and other factors included in "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in other documents that the Company files with the SEC. The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition, and results of operations. This release contains time-sensitive information that reflects management's best analysis only as of the date of this release. Except to the extent required by applicable laws, the Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied herein will not be realized.

    ABOUT SENSIENT TECHNOLOGIES

    Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors, and other specialty ingredients. Sensient uses advanced technologies and robust global supply chain capabilities to develop specialized solutions for food and beverages, as well as products that serve the pharmaceutical, nutraceutical, and personal care industries. Sensient's customers range in size from small entrepreneurial businesses to major international manufacturers representing some of the world's best-known brands. Sensient is headquartered in Milwaukee, Wisconsin.

    www.sensient.com

     
    Sensient Technologies Corporation
    (In thousands, except percentages and per share amounts)
    (Unaudited)
     
    Consolidated Statements of Earnings

    Three Months Ended March 31,

     

     

     

     

     

    2025

     

    2024

     

    % Change

     
    Revenue

    $

    392,325

     

    $

    384,670

     

    2.0

    %

     
    Cost of products sold

     

    260,548

     

     

    258,121

     

    0.9

    %

    Selling and administrative expenses

     

    78,247

     

     

    77,143

     

    1.4

    %

     
    Operating income

     

    53,530

     

     

    49,406

     

    8.3

    %

    Interest expense

     

    7,341

     

     

    7,045

     

     
    Earnings before income taxes

     

    46,189

     

     

    42,361

     

    Income taxes

     

    11,727

     

     

    11,421

     

     
    Net earnings

    $

    34,462

     

    $

    30,940

     

    11.4

    %

     
    Earnings per share of common stock:
    Basic

    $

    0.82

     

    $

    0.73

     

     
    Diluted

    $

    0.81

     

    $

    0.73

     

     
    Average common shares outstanding:
    Basic

     

    42,197

     

     

    42,104

     

     
    Diluted

     

    42,469

     

     

    42,305

     

     
     
     
    Results by Segment

    Three Months Ended March 31,

     

     

     

     

     

    Revenue

    2025

     

    2024

     

    % Change

     
    Flavors & Extracts

    $

    193,681

     

    $

    193,092

     

    0.3

    %

    Color

     

    167,750

     

     

    160,025

     

    4.8

    %

    Asia Pacific

     

    41,901

     

     

    40,306

     

    4.0

    %

    Intersegment elimination

     

    (11,007

    )

     

    (8,753

    )

     
    Consolidated

    $

    392,325

     

    $

    384,670

     

    2.0

    %

     
    Operating Income
     
    Flavors & Extracts

    $

    24,989

     

    $

    23,678

     

    5.5

    %

    Color

     

    34,852

     

     

    31,679

     

    10.0

    %

    Asia Pacific

     

    9,442

     

     

    8,776

     

    7.6

    %

    Corporate & Other

     

    (15,753

    )

     

    (14,727

    )

     
    Consolidated

    $

    53,530

     

    $

    49,406

     

    8.3

    %

     
     
    Sensient Technologies Corporation
    (In thousands)
    (Unaudited)
     
    Consolidated Condensed Balance Sheets

    March 31,

     

    December 31,

    2025

     

    2024

     
    Cash and cash equivalents

    $

    32,574

    $

    26,626

    Trade accounts receivable

     

    315,024

     

    290,087

    Inventories

     

    598,204

     

    600,302

    Prepaid expenses and other current assets

     

    54,407

     

    44,871

    Total Current Assets

     

    1,000,209

     

    961,886

     
    Goodwill & intangible assets (net)

     

    435,681

     

    423,658

    Property, plant, and equipment (net)

     

    499,184

     

    491,587

    Other assets

     

    157,594

     

    146,663

     
    Total Assets

    $

    2,092,668

    $

    2,023,794

     
    Trade accounts payable

    $

    110,611

    $

    139,052

    Short-term borrowings

     

    18,575

     

    19,848

    Other current liabilities

     

    101,509

     

    111,739

    Total Current Liabilities

     

    230,695

     

    270,639

     
    Long-term debt

     

    683,266

     

    613,523

    Accrued employee and retiree benefits

     

    25,175

     

    24,499

    Other liabilities

     

    58,498

     

    54,147

    Shareholders' Equity

     

    1,095,034

     

    1,060,986

     

    Total Liabilities and Shareholders' Equity

    $

    2,092,668

    $

    2,023,794

     
     
    Sensient Technologies Corporation
    (In thousands, except per share amounts)
    (Unaudited)
     
    Consolidated Statements of Cash Flows
    Three Months Ended March 31,

    2025

    2024

    Cash flows from operating activities:
    Net earnings

    $

    34,462

     

    $

    30,940

     

    Adjustments to arrive at net cash provided by operating activities:
     
    Depreciation and amortization

     

    15,074

     

     

    14,709

     

    Share-based compensation expense

     

    2,900

     

     

    1,995

     

    Net loss (gain) on assets

     

    46

     

     

    (193

    )

    Portfolio Optimization Plan costs

     

    831

     

     

    1,189

     

    Deferred income taxes

     

    1,282

     

     

    (4

    )

    Changes in operating assets and liabilities:
    Trade accounts receivable

     

    (20,780

    )

     

    (28,331

    )

    Inventories

     

    7,202

     

     

    26,624

     

    Prepaid expenses and other assets

     

    (8,064

    )

     

    (13,655

    )

    Trade accounts payable and other accrued expenses

     

    (25,859

    )

     

    (21,993

    )

    Accrued salaries, wages, and withholdings

     

    (21,665

    )

     

    29

     

    Income taxes

     

    4,989

     

     

    3,150

     

    Other liabilities

     

    604

     

     

    674

     

     
    Net cash (used in) provided by operating activities

     

    (8,978

    )

     

    15,134

     

     
    Cash flows from investing activities:
    Acquisition of property, plant, and equipment

     

    (16,854

    )

     

    (11,030

    )

    Proceeds from sale of assets

     

    7

     

     

    93

     

    Acquisition of new business

     

    (4,349

    )

     

    -

     

    Other investing activities

     

    (88

    )

     

    (1

    )

     
    Net cash used in investing activities

     

    (21,284

    )

     

    (10,938

    )

     
    Cash flows from financing activities:
    Proceeds from additional borrowings

     

    66,449

     

     

    38,053

     

    Debt payments

     

    (10,771

    )

     

    (27,031

    )

    Dividends paid

     

    (17,376

    )

     

    (17,312

    )

    Other financing activities

     

    (2,341

    )

     

    (2,828

    )

     
    Net cash provided by (used in) financing activities

     

    35,961

     

     

    (9,118

    )

     
    Effect of exchange rate changes on cash and cash equivalents

     

    249

     

     

    1,405

     

     
    Net increase (decrease) in cash and cash equivalents

     

    5,948

     

     

    (3,517

    )

    Cash and cash equivalents at beginning of period

     

    26,626

     

     

    28,934

     

    Cash and cash equivalents at end of period

    $

    32,574

     

    $

    25,417

     

     
     
    Supplemental Information
    Three Months Ended March 31,

    2025

     

    2024

     
    Dividends paid per share

    $

    0.41

     

    $

    0.41

     

     
     
    Sensient Technologies Corporation
    (In thousands, except percentages and per share amounts)
    (Unaudited)
     
    Reconciliation of Non-GAAP Amounts
    The Company's results for the three months ended March 31, 2025 and 2024 include adjusted operating income, adjusted net earnings, and adjusted diluted earnings per share, which, in each case, exclude Portfolio Optimization Plan costs.
     
     

    Three Months Ended March 31,

    2025

     

    2024

     

    % Change

    Operating income (GAAP)

    $

    53,530

     

    $

    49,406

     

     

    8.3

    %

    Portfolio Optimization Plan costs – Cost of products sold

     

    1,814

     

     

    107

     

    Portfolio Optimization Plan costs – Selling and administrative
    expenses

     

    1,050

     

     

    2,705

     

    Adjusted operating income

    $

    56,394

     

    $

    52,218

     

     

    8.0

    %

     
    Net earnings (GAAP)

    $

    34,462

     

    $

    30,940

     

     

    11.4

    %

    Portfolio Optimization Plan costs, before tax

     

    2,864

     

     

    2,812

     

    Tax impact of Portfolio Optimization Plan costs(1)

     

    (702

    )

     

    (355

    )

    Adjusted net earnings

    $

    36,624

     

    $

    33,397

     

     

    9.7

    %

     
    Diluted earnings per share (GAAP)

    $

    0.81

     

    $

    0.73

     

     

    11.0

    %

    Portfolio Optimization Plan costs, net of tax

     

    0.05

     

     

    0.06

     

    Adjusted diluted earnings per share

    $

    0.86

     

    $

    0.79

     

     

    8.9

    %

     
    Note: Earnings per share calculations may not foot due to rounding differences.
     
    (1) Tax impact adjustments were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
     
     
    Results by Segment

    Three Months Ended March 31,

     

     

     

     

    Adjusted

     

     

     

     

     

    Adjusted

    Operating Income

    2025

     

    Adjustments(2)

     

    2025

     

    2024

     

    Adjustments(2)

     

    2024

     
    Flavors & Extracts

    $

    24,989

     

    $

    -

     

    $

    24,989

     

    $

    23,678

     

    $

    -

    $

    23,678

     

    Color

     

    34,852

     

     

    -

     

     

    34,852

     

     

    31,679

     

     

    -

     

    31,679

     

    Asia Pacific

     

    9,442

     

     

    -

     

     

    9,442

     

     

    8,776

     

     

    -

     

    8,776

     

    Corporate & Other

     

    (15,753

    )

     

    2,864

     

     

    (12,889

    )

     

    (14,727

    )

     

    2,812

     

    (11,915

    )

     
    Consolidated

    $

    53,530

     

    $

    2,864

     

    $

    56,394

     

    $

    49,406

     

    $

    2,812

    $

    52,218

     

     
     
    (2) Adjustments consist of Portfolio Optimization Plan costs.
     
     
    The following table summarizes the percentage change in the 2025 results compared to the 2024 results for the corresponding periods.
     
    Three Months Ended March 31, 2025
    Revenue Total Foreign

    Exchange

    Rates
    Adjustments(3) Local

    Currency

    Adjusted
    Flavors & Extracts

     

    0.3

    %

     

    (1.4

    %)

     

    N/A

     

     

    1.7

    %

    Color

     

    4.8

    %

     

    (3.4

    %)

     

    N/A

     

     

    8.2

    %

    Asia Pacific

     

    4.0

    %

     

    (0.8

    %)

     

    N/A

     

     

    4.8

    %

    Total Revenue

     

    2.0

    %

     

    (2.1

    %)

     

    N/A

     

     

    4.1

    %

     
    Operating Income
    Flavors & Extracts

     

    5.5

    %

     

    (0.7

    %)

     

    0.0

    %

     

    6.2

    %

    Color

     

    10.0

    %

     

    (3.5

    %)

     

    0.0

    %

     

    13.5

    %

    Asia Pacific

     

    7.6

    %

     

    0.6

    %

     

    0.0

    %

     

    7.0

    %

    Corporate & Other

     

    7.0

    %

     

    0.0

    %

     

    (1.2

    %)

     

    8.2

    %

    Total Operating Income

     

    8.3

    %

     

    (2.5

    %)

     

    0.5

    %

     

    10.3

    %

    Diluted Earnings Per Share

     

    11.0

    %

     

    (2.7

    %)

     

    2.3

    %

     

    11.4

    %

    Adjusted EBITDA

     

    7.9

    %

     

    (2.2

    %)

     

    N/A

     

     

    10.1

    %

     
    (3) Adjustments consist of Portfolio Optimization Plan costs.
     
    Sensient Technologies Corporation
    (In thousands, except percentages)
    (Unaudited)
     
    Reconciliation of Non-GAAP Amounts - Continued
    The following table summarizes the reconciliation between Operating Income (GAAP) and Adjusted EBITDA for the three months ended March 31, 2025 and 2024.

     

     

     

    Three Months Ended March 31,

     

     

     

     

    2025

    2024

     

    % Change

    Operating income (GAAP)

    $

    53,530

     

    $

    49,406

     

    8.3

    %

    Depreciation and amortization

     

    15,074

     

     

    14,709

     

    Share-based compensation expense

     

    2,900

     

     

    1,995

     

    Portfolio Optimization Plan costs, before tax

     

    2,864

     

     

    2,812

     

    Adjusted EBITDA

    $

    74,368

     

    $

    68,922

     

    7.9

    %

     
     
     
     
    The following table summarizes the reconciliation between Debt (GAAP) and Net Debt, and Operating Income (GAAP) and Credit Adjusted EBITDA for the trailing twelve months ended March 31, 2025 and 2024.
     

    March 31,

    Debt

    2025

     

    2024

    Short-term borrowings

    $

    18,575

     

    $

    19,439

     

    Long-term debt

     

    683,266

     

     

    643,511

     

    Credit Agreement adjustments(4)

     

    (21,165

    )

     

    (13,775

    )

    Net Debt

    $

    680,676

     

    $

    649,175

     

     
    Operating income (GAAP)

    $

    195,703

     

    $

    153,591

     

    Depreciation and amortization

     

    60,694

     

     

    58,379

     

    Share-based compensation expense

     

    10,989

     

     

    8,661

     

    Portfolio Optimization Plan costs, before tax

     

    6,683

     

     

    30,653

     

    Other non-operating gains(5)

     

    (871

    )

     

    (1,055

    )

    Credit Adjusted EBITDA

    $

    273,198

     

    $

    250,229

     

     
    Net Debt to Credit Adjusted EBITDA 2.5x 2.6x
     
    (4) Adjustments include cash and cash equivalents, as described in the Company's Third Amended and Restated Credit Agreement (Credit Agreement), and certain letters of credit and hedge contracts.
    (5) Adjustments consist of certain financing transaction costs, certain non-financing interest items, and gains and losses related to certain non-cash, non-operating, and/or non-recurring items as described in the Credit Agreement.
     
    We have included each of these non-GAAP measures in order to provide additional information regarding our underlying operating results and comparable period-over-period performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. These non-GAAP measures should not be considered in isolation. Rather, they should be considered together with GAAP measures and the rest of the information included in this release and our SEC filings. Management internally reviews each of these non-GAAP measures to evaluate performance on a comparative period-to-period basis and to gain additional insight into underlying operating and performance trends, and we believe the information can be beneficial to investors for the same purposes. These non-GAAP measures may not be comparable to similarly titled measures used by other companies.

    Category: Earnings

    Source: Sensient Technologies Corporation

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250424600201/en/

    Amy Agallar

    (414) 347-3706

    [email protected]

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